Economics 9708 · AS & A Level · 7.5

7.5 — practice question

The diagram shows a firm’s cost and revenue curves. The firm carries out one successful $100 million advertising campaign. How will this influence its cost and revenue curves?

  • AMR curve shifts to right; AR curve shifts to right; MC curve shifts up; AC curve unchanged
  • BMR curve shifts to right; AR curve shifts to right; MC curve unchanged; AC curve shifts up
  • CMR curve unchanged; AR curve unchanged; MC curve shifts up; AC curve unchanged
  • DMR curve unchanged; AR curve unchanged; MC curve unchanged; AC curve shifts up

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